1.Have a Clear Trading Plan

Define your entry, exit, and stop-loss levels before entering any trade.

  • Know your risk/reward ratio—smart money often targets at least 1:2 or better.

  • Plan for different market conditions (trending, ranging, news-driven).

    2.Risk Management is King

Never risk more than 1-2% of your capital per trade.

  • Use position sizing based on your stop-loss and account size.

  • Smart money survives losing streaks by not overleveraging.

3.Follow Liquidity & Volume

Smart money trades where liquidity is—around key support/resistance zones, round numbers, and high-volume levels.

  • Watch for stop hunts and fakeouts; smart money often drives price into retail stop zones to create liquidity for their entries.

Be Patient & Selective

Smart traders wait for high-probability setups, even if that means taking fewer trades.

  • No FOMO. If a setup isn’t perfect, they let it go.


5. Trade With the Trend – Until It Ends

Smart money trades with the prevailing trend—they’re not trying to call tops and bottoms (except with heavy confirmation).

  • Use higher timeframes to spot institutional footprints (e.g., accumulation/distribution, order blocks).


    6. Control Emotions

No revenge trading.

  • No impulsive decisions after a win or a loss.

  • Smart money sticks to the plan, regardless of emotion.

7. Use Data, Not Hope


Backtest strategies.

  • Keep a trading journal to analyze what works and what doesn’t.

  • Trust statistics, not gut feelings.

8. Understand Market Structure

Smart money reads price action: breaks of structure, liquidity grabs, market cycles (accumulation → markup → distribution → markdown).

  • Recognise false breakouts and trap zones where retail gets caught.

    Tools Smart Money Uses

  • Volume Profile

  • Order Flow / Footprint Charts

  • COT Reports

  • Institutional Supply/Demand Zones

  • Smart Money Concepts (SMC) – e.g., internal/external liquidity, inducements, mitigation blocks

Try this with real examples:

🔹 $LUNA — Use 3x leverage, set tight stops, and watch for traps 👁️.

🔹 $FLUX — Identify strong liquidity zones before entering 🧭.

🔹 $CRO — Start with spot, then slowly introduce light leverage 🔄.

🎯 Take control.

⚒️ Use leverage as a tool—not a weapon.

🛡️ Trade smart. Stay protected. Avoid the trap.

#TradingTypes101 #ElonMuskDOGEDeparture #BinanceAlphaAlert #BinanceCommunity